(28 May 2009 8:30 pm)

MUMBAI: Dish TV has got an enabling resolution to raise up to $200 million (Rs 9.5 billion) via foreign currency convertible bonds (FCCBs).

"We have been indicated by our lead manager to raise $150 million. We have taken an enabling resolution from the board to raise up to $200 million. The size of the FCCB will depend upon the market conditions," says Dish TV managing director Jawahar Goel.

Indiantelevision.com had reported yesterday that Dish TV had plans to raise $150 million through FCCBs to complete its funding requirement before it operationally breaks even. The funding will be largely towards customer acquisition as the Subhash Chandra-owned Essel Group company targets to mop up 2.5 million subscribers in the current fiscal.

Market analysts say Dish TV is expected to dilute 12-15 per cent stake after conversion of the FCCBs. The tenure of the FCCB issue will be 5-7 years.

"The extent of the equity dilution will depend on the conversion price of the FCCBs. We will be able to comment on this once we fix the price. We will be ready with the price closer to the date of the issue," clarifies Goel.

Dish TV promoters hold 80.15 per cent stake in the company after subscribing to the rights issue of Rs 11.4 billion in three tranches. The company has already received Rs 3.1 billion in the first tranche.

"The board has approved the raising of long-term funds by way of issuance of FCCBs for an amount not exceeding $200 million," Dish TV said in a filing to the BSE.

Further, the board has approved the grant of 589,200 stock options convertible into equal number of equity shares to 13 employees at an exercise price of Rs 47.65 each under ESOP (employee stock options plan).

Shares of Dish TV closed Thursday at Rs 49.35, up 3.57 per cent from its previous close on the BSE.

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